Yes, it is, in my opinion, better to buy locally made furniture in Managua than importing it from the US or someplace else.
My wife and I have been living here half the year since 2008 (the other half is back in the US) and we had almost all of our furniture made for us here. I don't have the exact figures on hand, but we have 2 queen beds, a dining room set with 6 chairs, outdoor furniture (8 wooden rockers) a desk, a bible stand, a book case, and an extra closet. I think everything included was less than 3,500 USD.
The only problem is that the carpenters here (and not all of them) will tell you that they know exactly what you want and can have it done in a week or two. If you have detailed pictures of what you want, they will know what you want. And as far as the timeline goes, they tell that to everyone so expect them to take longer. But, that time thing, it is the same with the stores where you might buy furniture. I have been told more than once that what I wanted to purchase would be delivered "manana en la manana" (tomorrow morning) and received it a week later.